KORE RESUMES TRADING, NEW BOARD & MANAGEMENT
VANCOUVER, Nov. 2, 2018 /CNW/ - KORE Mining Ltd. ("KORE" or the "Company", formerly Eureka Resources Inc., "Eureka") is pleased to announce the resumption of trading on the TSX Venture Exchange under the symbol "KORE" with a new Board of Directors and Management. KORE is a development stage company that offers exposure to precious metals exploration and development in North America, with a corporate strategy focused on permitting of its California development projects and growth through discovery on its North American portfolio.
The Company has completed the amalgamation transaction and concurrent financing described in the Company's press releases dated July 24, 2018 and October 30, 2018, resulting in a total of 71,241,949 issued and outstanding common shares;
New directors and management of KORE have been appointed upon closing of the amalgamation of the Company as previously announced on February 27, 2018, April 6, 2018 and July 24, 2018;
The Company has re-launched its corporate website www.koremining.com. KORE encourages investors to check the website and SEDAR for updates, detailed property information, maps and diagrams, corporate events and investor materials.
Appointment of New Directors, Executives
In connection with the Closing, all of the directors and officers of KORE resigned and a new Board of Directors (the "Board") and management was appointed. The new Board consists of Adrian Rothwell, James W. Hynes, Brendan Cahill, Robert J. ("Don") MacDonald, and Harry Pokrandt. More information regarding the Board can be found in the Company's information circular dated June 22, 2018. Details of the Board and management are outlined below:
Adrian Rothwell, Director, President & CEO
Mr. Rothwell has over 20 years of experience in the mining and metals sector. He is currently a director of Fireweed Zinc Ltd. Previously, he served as an executive of Goldcorp Inc., and Chief Financial Officer of NuLegacy Gold Corp, Kiska Metals and MBMI Resources Inc. He is a British Columbia Chartered Professional Accountant and a member of the Chartered Accountants of Australia and New Zealand and holds a BA in Economics from Macquarie University.
James W. Hynes, Director, Chairman & COO
Formerly with Lafarge and Reperio Resources, Mr. Hynes has over 15 years of experience in the mining and metals sector, and a Bachelor of Science in Engineering (1999), specializing in geological and geotechnical engineering, from the University of New Brunswick.
Harry Pokrandt, Director
Mr. Pokrandt is the former Chief Executive Officer and director of Hive Blockchain Technologies Ltd. He is an independent director of Sandspring Resources Ltd. Mr. Pokrandt previously served as Managing Director of Macquarie Capital Markets Canada Ltd. (formerly, Orion Securities Inc.) from 1985 to 2015, leading its Vancouver Metals & Mining Group where he worked on numerous financing and advisory assignments. He was a director of Lithium X Energy Corp. prior to its sale and was also a director of Fiore Exploration Ltd., and BQ Metals Corp.
Don MacDonald, Director
Currently CEO of NorZinc Ltd. developing the Prairie Creek zinc-lead-silver mine in the NWT. Mr. MacDonald served as Chief Financial Officer and then acting Chief Executive Officer at KGHM International (formerly Quadra FNX Mining) from 2010 until March 2017. QuadraFNX was purchased in 2012 for $3 billion by Polish mining company, KGHM. Mr. MacDonald has over 30 years' experience in mine development, operation and financing and has been involved in the operation or development of over twenty mines in North and South America, the completion of mine financings totaling $5 billion, and multiple M&A transactions. He previously served as Chief Financial Officer for NovaGold, De Beers Canada Mining (formerly Winspear Diamonds) and Dayton Mining. Mr. MacDonald is a Chartered Professional Accountant, CA and holds Bachelor's and Master's degrees in Engineering from Oxford University. He is a director of the Mining Association of Canada.
Brendan Cahill, Director
Mr. Cahill has over 15 years of experience in the mining and metals sector and in corporate finance, and is currently Chief Executive Officer of Excellon Resources, and a director of Group Eleven Resources. He was formerly the Vice President of Corporate Development for Pelangio Exploration Inc. and a lawyer at Davies Ward Phillips & Vineberg LLP.
Alan Ahlgren, CFO & Corporate Secretary
Mr. Ahlgren has over 30 years of experience across various industry sectors, including mining. He is currently CFO of Graphite One Resources Inc., and formerly the Vice President Finance at Kinross Gold Corp., CFO at AQM Copper Inc. and First Coal Corp. As a graduate of the University of Manitoba with a Bachelor of Commerce in Accounting and Finance, he is a British Columbia Chartered Professional Accountant.
KORE is a development stage company that offers exposure to precious metals exploration and development in North America, with a corporate strategy focused on the advancement of its California development and British Columbia advanced exploration stage projects.
KORE, indirectly through wholly-owned subsidiaries, owns 100% interests in the Imperial and Long Valley gold development projects, located in California, USA (together, the "Projects"). Combined, most recent current and historical estimates of resources specify a total of 2,126,000 measured and indicated and 1,784,000 inferred gold ounces. A Qualified Person has not done sufficient work to classify the historical estimates as current resources and KORE is not treating the historical estimates as current resources. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historical estimates at the Projects can be classified as current resources.
Each of the Projects has the potential to host near-surface, open pit, heap leachable gold deposits. The Projects combine low technical risk, high advancement potential and a low initial cost.
A LARGE GOLD RESOURCE
Current and historical estimates of 2,126,000oz Measured and Indicated, 1,784,000oz Inferred with historic Proven & Probable reserves. A Qualified Person has not done sufficient work to classify the historical estimates as current resources and Kore is not treating the historical estimates as current resources.
OVER 141,220 METRES (463,000 FEET) OF DRILLING
Long Valley drilling has consisted of 869 holes totaling 268,275ft
Imperial drilling has consisted of 349 RC holes and 9 core holes totalling 195,047ft
LOW COST MINING, HISTORICAL FEASIBILITY, PEA
Low strip ratios (Long Valley 1:1, Imperial 2.68:1)
Feasibility and environmental impact completed by Glamis (Goldcorp) in 1996 on Imperial
California gold deposits deeply oxidized epithermal systems with broad disseminated zones
Excellent metallurgy in oxide zones (Long Valley 79%, Imperial 83% recoveries projected)
Low operating cost projects with weakly cemented gravel overburden at Imperial and consolidated pyroclastic and moat sediments at Long Valley
The Imperial Project has a historical feasibility study and environmental impact study published in 1996 by Glamis Gold (now Goldcorp Inc.). A historical preliminary economic assessment was prepared in 20121, projecting average production of 120,000 ounces of gold per year over a mine life of 10 years. Long Valley had a historical preliminary economic assessment performed in 2008, which projected an internal pre-tax NPV of US$102 million (US$800/oz gold price) on oxide ounces of gold only (approximately 535,400 ounces of gold).2
Table 1: Combined historical3 estimates of Kore Project resources4
1 Imperial Project: Preliminary Economic Assessment Technical Report October 26, 2012 by Gordon Doerksen, P.Eng. Lois Boxill, P.Eng. et al of SRK Consulting (Canada) Inc. Prepared for ADR Capital Corp., Vancouver, BC. ("2012 PEA")
2 Long Valley Project: Technical Report, February 20, 2003 by Neil Prenn, P.Eng. and Charles V Muerhoff, P. Geo. of Mine Development Associates, and Technical Report, Preliminary Assessment, January 9, 2008 by Neil Prenn, P.Eng and Thomas Dyer, P.Eng. of Mine Development Associates, Reno Nevada. Prepared for Vista Gold Corp. ("2008 PEA").
3 The reader is cautioned that the above referenced "Historical Resource" is considered historical in nature and as such is based on prior data and reports prepared by previous property owners. The work necessary to verify the classification of this mineral resource estimate has not been completed and the resource estimate, therefore, cannot be treated as NI 43-101 current resource verified by a Qualified Person. There can be no assurance that any of the historical resources, in whole or in part, will ever become economically viable.
4 Mineral Resources are not mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral Resource will be converted into mineral Reserves. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
5 Long Valley Project: "Technical Report and Resource Estimate for the Long Valley Project, Mono County, California" with an effective date of April 25, 2018, prepared for the Company by Neil Prenn, P.E. and Steven I. Weiss, C.P.G. of Mine Development Associates in accordance with NI 43-101. Cutoff grade 0.17gpt oxide, 0.21gpt transition and sulfide.
Imperial Project: Preliminary Economic Assessment Technical Report October 26, 2012 by Gordon Doerksen, P.Eng. Lois Boxill, P.Eng. et al of SRK Consulting (Canada) Inc. Prepared for ADR Capital Corp., Vancouver, BC. ("2012 PEA")
6 The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
The historical mineral resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
Imperial Mineral Historical Resource Estimation Parameters: a) Grade estimation is based on assay samples composited to 20ft intervals. Grade capping thresholds were determined following a detailed statistical analysis of the data for the entire mineralized domains varied from 0.02 to 0.2 ounces per ton (opt) gold (Au). b) Resource model grade blocks were estimated using Gemcom GEMSTM modeling software based on a traditional wireframe interpretation constructed from a sectional interpretation of drilling data. c) The database for the Imperial model consisted of 349 RC holes totalling 190,134 feet of drilling. A total of 36,361 analyses were considered for use in the resource estimate. d) The modelled gold mineralized zone was subdivided into three domains displaying different strike or dip directions with a total length of 3,200 ft, width up to 800ft and average thickness of 85ft in the East area and 1,200ft in length, 1,000ft in width and average thickness of 90ft to 120ft in the West area, dipping from 5 to 35 degrees e) A bulk density value of 0.077 ton per cubic foot was used and derived from 9 core holes consisting of 32 samples collected in a 1994 and 1995 drilling program.
Mineral resources were reported within an optimized pit shell using a gold price of US$1,400/oz with a process recovery of 80%. g) Process costs used were US$1.50/ton and G&A was US$0.40/ton. Open pit mining costs were US$1.20/ton and sustaining capex was US$0.50/ton with open pit slopes of 45 degrees.
Long Valley Historical Mineral Resource Estimation Parameters: a) Grade estimation is based on assay samples composited to 10ft intervals. Grade capping thresholds were determined following a detailed statistical analysis of the data for the entire mineralized domains and varied from 0.029 to 0.452 ounces per ton (opt) gold (Au). Capped Au grade in the MDA model was 0.25opt. b) Resource model grade blocks were estimated using Surpac® modeling software based on a traditional wireframe interpretation constructed from a sectional interpretation of drilling data. c) The database for the Long Valley model consisted of 896 holes, including 20 core holes, totalling 268,275 feet of drilling. A total of 47,792 analyses were considered for use in the resource estimate. d) The modelled gold mineralized zone is contained within the Hilton Creek South and Southeast zones with a total length of 7,748ft and widths ranging from 500ft to 1,500ft in a generally flat lying tabular body from 50 to 200ft thickness e) A bulk density value of 0.065 ton per cubic foot was used and derived from 7 core holes consisting of 12 samples collected by Royal Gold, 10 core holes consisting of 93 samples collected by Amax and 10 samples by MDA. f) Mineral resources were reported within an optimized pit shell using a gold price of US$1,500/oz with a heap recovery of 80% less than 150ft from surface and 90% mill recovery between 150ft and 200ft. g) Crushing and heap leach costs used were US$1.40/ton & US$1.80/ton, respectively for heap leach operations and US$8.60/ton processed for Sulfide Plant operations. G&A was US$0.63/ton. Open pit mining costs were US$1.70/ton mined with open pit slopes of 45 degrees.
British Columbia, Canada
KORE's 100% owned FG Gold property is an advanced-stage gold project located in the Cariboo Mining Division. Historical exploration has established a Measured and Indicated (376,000 ounces) gold resource at an average grade of 0.776 g/t gold, using a cut-off grade of 0.5 g/t, and an Inferred gold resource (634,900 ounces) at an average grade of 0.718 g/t gold, using a cut-off grade of 0.5 g/t. Details of the gold resource can be found in "NI 43-101 Technical Report, Frasergold Exploration Project, Cariboo Mining Division, dated July 27, 2015" available under the Company's profile on SEDAR or on the Company's website.
KORE has a 100% interest in the Gold Creek property located in the Cariboo Mining Division. Gold Creek is a grassroots gold project neighbouring, and with similar geology to the Spanish Mountain deposit owned by Spanish Mountain Gold Ltd.
Yukon Territory, Canada
KORE's 100% owned Luxor property consists of three non-contiguous claim blocks totalling 360 mining claims. Luxor is located in the Dawson Range Gold Belt, a district of major porphyry, breccia and vein occurrences. Containing the Company's HAV claims, the Luxor property is located adjacent to the Vertigo discovery of White Gold Corp. (TSXV: WGO). KORE's 100% owned TAK property is also located in the Dawson Range Gold Belt and consists of 82 mining claims.
Neighbouring projects include Goldcorp's Coffee project and White Gold's White Gold project.
KORE owns a 50% interest in the Gemini lithium brine project located approximately 40 kilometres (26 miles) south of North America's only producing lithium mine at Silver Peak, Nevada.
Technical information with respect to the Projects contained in this news release has been reviewed and approved by David S. Smith, CPG, who is KORE's designated independent qualified person for the purposes of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any KORE common shares in the United States. The KORE common shares to be issued in connection with the Transaction have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
Cautionary Statement Regarding Adjacent Properties and Forward-Looking Information
All information contained in this news release with respect to KORE and Kore was supplied by the parties, respectively, for inclusion herein, and KORE and its directors and officers have relied on KORE for any information concerning such party, including information concerning the Projects.
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. Important factors that could cause actual results to differ materially from the Company's expectations also include risks detailed from time to time in the filings made by the Company with securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.
SOURCE Kore Mining
For further information: More information on KORE can be found on the Company's website at www.koremining.com and at www.sedar.com, or by contacting Adrian Rothwell, President and CEO, by email at firstname.lastname@example.org or by telephone at (888) 406 5779.